Inventory Management and Financial Performance Listed Construction Companies in Nigeria

Abstract

This study investigated the relationship between cash management and financial performance of listed construction companies on Nigerian Exchange Group. Specifically, the objectives of the study are to examine the relationship between cash management and earning per share, ascertain the relationship between cash management and net profit. The ex -post facto research design was used. The study population comprised Six (6) listed construction companies as listed on the Nigeria Exchange Group in 2021. The entire population was used as the sample size, using the census approach. Data was source through the annual report of listed construction companies for 2011-2020. Pearson correlation and multiple regression was used in data analysis with the aid of Stata12 software. The study revealed that there is no relationship between cash management and earnings per share of listed construction companies on the Nigerian Exchange Group. There is no relationship significant between cash management and net profit of listed construction companies on the Nigerian Exchange Group. The study concluded that there is no significant relationship between inventory management and financial performance. The study recommended that effort should be made to decrease the number of inventory turnover days and increase the creditors’ payable days in order to minimize the length of the working capital cycle for increase financial performance; efficient inventory control measure like storing and transferring stock, as well as tracking should be put in place for enhance financial performance.